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Will I have more options with a Mortgage Broker and a Bank? Answer |
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What benefit do I gain by using a Mortgage Broker? Answer |
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How do I know how much house I can afford? Answer |
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Do I need perfect credit to obtain a mortgage? Answer |
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How much cash will I need to purchase a home? Answer |
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What is the difference between a Conforming Mortgage and a Jumbo Mortgage? Answer |
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Does my income qualify me for a conforming mortgage? Answer |
| 8. |
How do I know which type of mortgage is best for me? Answer |
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What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer |
| 10. |
How is an index and margin used in an ARM? Answer |
| 11. |
If I can not document my income and/or assets can I still obtain a mortgage? Answer |
| 12. |
What does my mortgage payment include? Answer |
| 13. |
What is the difference bewtween a COOP and a Condominium? Answer |
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Q
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Will I have more options with a Mortgage Broker and a Bank? |
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A
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Since Mortgage Brokers arrange various types of mortgages programs through numerous lenders, you will generally have more options with a Mortgage Broker. A Bank only offers it's own mortgage programs. When applying to a bank, either you fit their programs and qualify or you do not. When you apply for a mortgage with Continental Mortgage Company you will have access to numerous lenders and programs. Additionally, Continental Mortgage Company has the experience and knowledge needed to match the correct lender and program to each borrower which helps assure deals close. |
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What benefit do I gain by using a Mortgage Broker? |
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A quality Mortgage Broker will save you the time of shopping bank to bank. In addition, a Mortgage Broker can also save you money (example - points and rate) by matching you with the best mortgage program available for your financial situation. |
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How do I know how much house I can afford? |
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The amount you can borrow will depend upon your employment history, credit history, current savings, monthly liabilities and the amount of down payment you are willing to make. Give us a call, and we can help you determine exactly how much you can afford.
Be suspicious of any mortgage representative that will give a quote over the phone without seeing any of you documentaion!!! |
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Do I need perfect credit to obtain a mortgage? |
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No. You don't need perfect credit to obtain a mortgage. But, as your credit rating decreases in quality, usually your interest rate will increase and the amount you can borrow decreases. |
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How much cash will I need to purchase a home? |
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The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
Earnest Money: The deposit that is supplied when you make an offer on the house.
Down Payment: A percentage of the cost of the home that is due at settlement.
Closing Costs: Costs associated with processing paperwork to purchase or refinance a house.
Reserves: Depending in the lender and program, you may need to show the lender additional assets you will have post closing equaling a certain number of months mortgage payment. |
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What is the difference between a Conforming Mortgage and a Jumbo Mortgage? |
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Conforming Mortgage - loan amount up to $417,000.00
Jumbo Mortgage - loan amount exceeds $417,000.00 |
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Does my income qualify me for a conforming mortgage? |
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For conforming mortgages (up to $417,000.00) having the lowest prevailing rates, the sum of the monthly principal (P), monthly interest (I), monthly taxes (T), monthly insurance payments (I) and other monthly liabilities appearing on your credit report should not exceed approximately 40% of the gross monthly household income.
If you do not meet the above criteria you may still be able to obtain a mortgage. Continental Mortgage Company works with many lenders that offer programs for borrowers that do not qualify for conventional (up to $417,000) mortgages. Contact us for more information. |
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How do I know which type of mortgage is best for me? |
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There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Continental Mortgage Company can help you evaluate your choices and help you make the most appropriate decision. |
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What is the difference between a fixed-rate loan and an adjustable-rate loan? |
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With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us. |
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How is an index and margin used in an ARM? |
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An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR). |
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If I can not document my income and/or assets can I still obtain a mortgage? |
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Although there used to be a variety of no income loan program options, currently, the answer is no. However, there are lenders that offer programs that use assets to determine a borrower's ability to repay the loan. |
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What does my mortgage payment include? |
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For most homeowners, the monthly mortgage payments include three separate parts:
Principal: Repayment on the amount borrowed
Interest: Payment to the lender for the amount borrowed
Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company. |
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What is the difference bewtween a COOP and a Condominium? |
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From the outside there seems to be very little difference. Usually both are multiple dwelling buildings with many of the same amenities. But when you take a closer look, there are significant differences. The following should help you understand the fundamental differences between a COOP and a Condominium.
- A COOP is considered Personal Property. The real estate (the building) is owned by the COOP Corporation. As a COOP unit owner, you recieve stock in the COOP Corporation and a Proprietary Lease. In other words, you are a stockholder of the corporation that owns the building and you have a lease which gives you the rights to occupy the unit. As a COOP unit owner you do not pay real estate taxes. You pay your proprtionate share of the COOP Corporation's expenses in the form of maintenance.
- A Condominium unit is Considered Real Property, which is similar in ownership to that of a single family house. As a Condominium owner, you actually take title to the real estate by filing a deed. Real Estate taxes are assessed to each unit. In addition, you also pay Common Charges in connection with expenses for the area common to all unit owners. For example, lobby, halls, laundry room, etc. The amount you pay for Common Charges is determined by the percent interest of common elements attributed to your unit.
If you have additional questions about COOPs and Condominiums, please feel free to contact us at (516) 248-1180. |
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